VeriSign, ICANN settle lawsuit over Site Finder

VeriSign and ICANN kiss and make up with an agreement that settles an …

Remember Site Finder? VeriSign, registrar of the .com and .net domains, created the "service" that would redirect users who mistyped domain names to a page full of paid advertisements. The entity in charge of regulating the top-level domains, the Internet Corporation for Assigned Names and Numbers (ICANN), wasn't too pleased with Site Finder, and told VeriSign to knock it off. VeriSign's contract with ICANN said that it must act as a "neutral registry provider," and ICANN felt that redirecting misguided surfers to a VeriSign search page full of advertising didn't fall under any definitions of the word "neutral" that it was aware of.

Not wanting to lose out on a potentially lucrative revenue stream, VeriSign initially resisted before acceding to ICANN's demands in October 2003. However, in February 2004, VeriSign had yet another change of heart and sued ICANN over its decision, claiming violations of antitrust laws. That lawsuit came to an end today, as VeriSign and ICANN have agreed to settle the suit.

Under terms of the agreement, VeriSign will get to continue administering the .com top-level domain through 2012, as ICANN extended the contract which was slated to expire in 2007. That means VeriSign has both the .net and .com TLDs locked up for the foreseeable future. In exchange, ICANN avoids what could be a long and costly legal battle. In addition, VeriSign is barred from relaunching Site Finder or other, similar services without prior approval from ICANN. Trading Site Finder for five more years of .com control was a no-brainer for VeriSign, which means they came out ahead in the legal battle.

The settlement comes on the heels of renewed discussion over ICANN's role in governing the Internet. ICANN operates as a not-for-profit corporation under a charter granted by the US Department of Commerce, and hence, under the auspices of the US government. Both the United Nations and EU have raised concerns over the current arrangement. The UN would like to bring Internet governance under the control of the ITU, while the EU is holding out hopes for a "private-public" partnership.

A signed, sealed, and delivered agreement with VeriSign that asserts the ICANN's authority over the TLD registrars (even if it means extending the registrar's lucrative contract) may stave off the cries for international or multinational control over Internet governance for a short time. On the other hand, now that the dispute with the world's largest registrar is resolved, efforts to wrest control away from ICANN may intensify.